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Call for overhaul of Major Projects Victoria

Updated
Wed 10 Oct 2012, 8:01 PM AEDT

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Auditor calls for overhaul of Major Projects Victoria

7pm TV News VIC

The Victorian auditor-general has released a scathing report into the operations and governance of Major Projects Victoria (MPV), saying the body does not operate effectively, efficiently or economically.

The agency provides expert advice to government departments on the delivery of projects of state significance, such as the Australian Synchrotron and Federation Square.

The report found poor governance standards and a lack of accountability mean it is unlikely MPV is making the best use of public resources.

It found the unit is not meeting legislative requirements in record keeping and its management of internal contracts increases the risk of fraud.

The report calls for a wide-ranging overhaul of MPV's practices.

"MPV's governance and operational shortcomings are pervasive and should be addressed as a priority," the report says.

The report also says there are major deficiencies in the way internal contracts are managed, with some missing contracts or changes without adequate reason.

"This maladministration around contracts not only diminishes transparency and accountability but increases the risk of error and fraud."

The agency is also accused of having employment practises that "do not represent value-for-money" with employees resigning and being rehired soon after to perform the same work at a much higher cost to the public.

The Minister for Major Projects, Denis Napthine, has blamed the former Labor government.

"I am now referring this report to the Better Services Committee to look at the future structure and operation," he said.

He says the State Government will adopt all of the auditor-general's recommendations.